Ethereum Price Surges, Testing Resistance Trendline
The price of Ethereum (ETH) has experienced a significant increase since October 19, reaching a peak of $1,854 today. This surge has brought the price to a descending resistance trendline, raising the question of whether Ethereum will break out.
Ethereum Bounces at Nearly 500-Day Ascending Support Trendline
On the weekly time frame chart, it can be observed that the Ethereum price has been following an ascending support trendline since its low of $882 in June 2022. This support trendline has acted as a slope for the upward movement. In October, the ETH price bounced at this trendline and formed a bullish engulfing candlestick pattern the following week. A similar candlestick pattern in July 2021 led to an all-time high price of $4,868 in November.
Whales Continue Accumulating Ethereum
On-chain data suggests a bullish sentiment for the Ethereum price, particularly when analyzing whale movements. Recently, two whales withdrew nearly $68 million worth of Ethereum from Coinbase, followed by another withdrawal of $15 million worth of ETH. These large movements can potentially cause a supply shock and drive up prices.
Price Prediction: Is Ethereum Yearly High the Next Target?
Technical analysis on the daily timeframe reveals a bullish outlook for Ethereum. The increase in price was preceded by a long-term bullish divergence in the daily Relative Strength Index (RSI). The ETH price has now reached a descending resistance trendline that has been in place since the yearly high. If the price breaks out, it could confirm a bullish trend reversal with the next resistance area around $2,000.
Hot Take: Bullish Momentum Continues for Ethereum
The Ethereum price has seen a significant surge, bouncing off the ascending support trendline and testing the resistance trendline. On-chain data indicates continued accumulation by whales, potentially driving up prices. Technical analysis supports a bullish outlook, with the RSI showing a momentum increase and the possibility of a breakout. While a rejection from the resistance trendline could lead to a minor drop, many predict that Ethereum will reach its yearly high and potentially exceed it.
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